Relations with India are likely to remain broadly constructive. India is Bhutan's largest trade partner by a wide margin, and it is a crucial source of foreign aid and investment. Although tensions occasionally arise over the issue of Bhutanese refugees living in neighbouring Nepal, and the level of responsibility that India (as the major regional power) should accept in efforts to resolve the dispute, bilateral ties remain close.
Bhutan will continue to hold talks with the Chinese government, which has built six roads close to the northern border of Bhutan, at least three of which encroach on Bhutanese territory, according to the government. Official trade between China and Bhutan is modest, totalling less than US$10m a year. Bhutan's strategic geographical position will remain of much greater interest to China than its commercial potential.